Avenue Supermarts – Reaffirmation Of Value-For-Money Positioning : ICICI Securities

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Avenue Supermarts Ltd.’s Q4 was impressive.

6% same store sales growth in January-February reconfirms the (consumer) relevance of value for money positioning, which, in our view, may potentially be a stronger competitive advantage in FY21-23E.

Recovery in general merchandise and apparel was pleasing – driving gross and operating margin expansion of 120 and 170 basis points, respectively.

That said, operational short-term challenges exist as ~50% of stores are in Maharashtra and Gujarat (limited operating hours).

Notable events of FY21 are-

  1. it added 22 new stores,

  2. inventory days were up (plus six days)

  3. converted two stores to e-commerce fulfilment centres,

  4. extended DMart Ready (e-com) to general merchandise.

Click on the attachment to read the full report:

ICICI Securities Avenue Q4FY21 Results Update.pdf


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